Golf has "become a dirty word" in the U.K. asset management market, according to Aime Williams of the FINANCIAL TIMES. Since the Financial Conduct Authority announced two weeks ago that investment managers "were spending too much time wooing clients with lavish corporate jollies, the market has gotten itself into something of a flap." The latest note is "warning bosses to stay off the golf course specifically -- and those in the industry fear it signals the start of a serious crackdown." A senior exec at one large asset manager said that "alarm bells have begun to ring at some companies as a result." He said, "What we have seen in the past two weeks is that some companies have issued a blanket ban on sporting events." The FCA said that "in order to legitimise their chosen hospitality event, whether inviting advisers to the rugby or asking them for a round of golf, fund managers must show that it benefits the end investor." Companies have "responded in a range of ways." Some have "argued that playing golf will benefit the end client, while others are clear it will not." Brooks Macdonald Deputy CEO Andrew Shepherd said, "I would say 4.5 hours on a golf course with an adviser explaining where you are going with your business and how you invest should give advisers a better idea of whether you are the fund manager for them." Vanguard Senior Counsel for Regulatory Affairs Richard Withers said, "I would question whether you can have a business conversation as effectively on a golf course." Vanguard banned attendance of "premier sporting events" some time ago (FT, 5/6).
